This iconic American chain is closing doors–Will your favorite store survive 2025?
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As the winds of economic change blow across the American landscape, the retail sector braces for a storm that's brewing on the horizon.
The year 2025 is shaping up to be a pivotal moment for many businesses, with iconic American chains forecasting a rocky road ahead. Among them, a household name is facing a particularly tough challenge, leading to the closure of dozens of locations.
The question on everyone's mind: Will your favorite store weather the storm?
Kohl's, a Wisconsin-based department store with a history that spans over half a century, has become the latest retail giant to signal distress.
With over 1,150 locations nationwide, Kohl's has been a go-to destination for families seeking quality and value.
However, the company has recently lowered its sales expectations for 2025, citing a shift in consumer spending patterns that could spell trouble for the retail industry at large.
The retailer's latest forecast anticipates a sales decline of 5 to 7%, a significant revision that sent Kohl's stock tumbling by over 26% following the announcement.
This downturn comes on the heels of a profit report of $48 million for the quarter ending on February 1, a stark contrast to the $186 million reported in the same quarter the previous year.
A sluggish back-to-school season and a holiday performance that fell short of expectations have forced Kohl's to adopt a more conservative outlook.
In response, the company is taking decisive action to stabilize its operations, including the closure of dozens of “underperforming” stores.
By April 1, Kohl's plans to shutter 27 stores across 15 states, a move that former CEO Tom Kingsbury described as “difficult but necessary” to support the long-term health and future of the business.
The closures are part of a broader trend of retail adjustments, with comparable sales expected to drop by 4 to 6% after accounting for store openings and closures. This is more severe than Wall Street's predictions, indicating a potential underestimation of the challenges ahead.
Kohl's is not alone in its struggles. The company joins a list of retail behemoths, including Walmart, Best Buy, Target, and Campbell's, that are bracing for a slowdown in sales as consumers tighten their belts in the face of persistent inflation in groceries, vehicles, and housing.
Even dining establishments like Texas Roadhouse and Taco Bell have reported a dip in sales as the new year unfolds.
These consumer spending trends have led to significant sell-offs on Wall Street, with investors sending indexes into “correction” territory.
You might like: 90% off deals and store closures? Here’s why this retail store is making major moves
The Dow Jones Industrial Average, S&P 500, and the tech-heavy Nasdaq all suffered substantial losses, marking one of the worst trading days in three years.
This market turbulence is compounded by economic uncertainty and political factors, including President Trump's trade policies and tariffs on key US trade partners.
Source: USA TODAY / Youtube.
Amidst this C-Suite shakeup, Kohl's has appointed Ashley Buchanan, a seasoned executive from Walmart and Sam's Club, as its new CEO.
Buchanan steps into a challenging role, tasked with navigating the company through these uncertain times.
This news comes as an update following the 27 Kohl’s stores that closed down recently.
Also read: Is your favorite store next? Iconic retail giant closing down in one of America’s top malls – find out why!
Are there stores you're concerned about? How are you adjusting your shopping habits in light of these economic shifts? Share your thoughts and experiences in the comments below!
The year 2025 is shaping up to be a pivotal moment for many businesses, with iconic American chains forecasting a rocky road ahead. Among them, a household name is facing a particularly tough challenge, leading to the closure of dozens of locations.
The question on everyone's mind: Will your favorite store weather the storm?
Kohl's, a Wisconsin-based department store with a history that spans over half a century, has become the latest retail giant to signal distress.
With over 1,150 locations nationwide, Kohl's has been a go-to destination for families seeking quality and value.
However, the company has recently lowered its sales expectations for 2025, citing a shift in consumer spending patterns that could spell trouble for the retail industry at large.
The retailer's latest forecast anticipates a sales decline of 5 to 7%, a significant revision that sent Kohl's stock tumbling by over 26% following the announcement.
Kohl's, an iconic American retail chain, has revised its sales expectations for 2025 to project a decline due to changing consumer spending habits. Image source: 6abc Philadelphia / Youtube.
This downturn comes on the heels of a profit report of $48 million for the quarter ending on February 1, a stark contrast to the $186 million reported in the same quarter the previous year.
A sluggish back-to-school season and a holiday performance that fell short of expectations have forced Kohl's to adopt a more conservative outlook.
In response, the company is taking decisive action to stabilize its operations, including the closure of dozens of “underperforming” stores.
By April 1, Kohl's plans to shutter 27 stores across 15 states, a move that former CEO Tom Kingsbury described as “difficult but necessary” to support the long-term health and future of the business.
The closures are part of a broader trend of retail adjustments, with comparable sales expected to drop by 4 to 6% after accounting for store openings and closures. This is more severe than Wall Street's predictions, indicating a potential underestimation of the challenges ahead.
Kohl's is not alone in its struggles. The company joins a list of retail behemoths, including Walmart, Best Buy, Target, and Campbell's, that are bracing for a slowdown in sales as consumers tighten their belts in the face of persistent inflation in groceries, vehicles, and housing.
Even dining establishments like Texas Roadhouse and Taco Bell have reported a dip in sales as the new year unfolds.
These consumer spending trends have led to significant sell-offs on Wall Street, with investors sending indexes into “correction” territory.
You might like: 90% off deals and store closures? Here’s why this retail store is making major moves
The Dow Jones Industrial Average, S&P 500, and the tech-heavy Nasdaq all suffered substantial losses, marking one of the worst trading days in three years.
This market turbulence is compounded by economic uncertainty and political factors, including President Trump's trade policies and tariffs on key US trade partners.
Source: USA TODAY / Youtube.
Amidst this C-Suite shakeup, Kohl's has appointed Ashley Buchanan, a seasoned executive from Walmart and Sam's Club, as its new CEO.
Buchanan steps into a challenging role, tasked with navigating the company through these uncertain times.
This news comes as an update following the 27 Kohl’s stores that closed down recently.
Also read: Is your favorite store next? Iconic retail giant closing down in one of America’s top malls – find out why!
Are there stores you're concerned about? How are you adjusting your shopping habits in light of these economic shifts? Share your thoughts and experiences in the comments below!
